DIFFERENT TYPES OF BANKING ACTIVITIES
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| Banking Activities |
RETAIL BANKING
Retail banking refers to the provision of services by a bank to individual customers
It is also known as consumer banking
WHOLESALE BANKING
Doing banking business with corporate / industrial entities is called as wholesale banking
It is also known as corporate Banking / commercial banking
It might include currency conversion, working capital financing and large trade transactions
UNIVERSAL BANKING
The provision of a wide range of financial services by an organisations under one roof is called as universal banking
The main advantage of universal banking lies in the ability of banks to cross sell their products to a West clientele of customers and their by and both fee based and non Feb based income
NARROW BANKING
Narrow banking which involves investing large portion of the deposits in a risk free assets like government securities
Narrow banking restrict banks to holding liquid and safe Government bonds
It is also called as safe banking
PARA BANKING
The activities which are done by a bank apart from its normal day to day transactions are called para banking activities
Eligible financial services rendered by banks is called para banking
CORE BANKING
Core banking is a banking services provided by a group of network Bank branches where customer may access his / her bank account and perform basic banking transactions from any of the member branch offices
OFFSHORE BANKING
An offshore banking deals outside of the country of residence of the depositor, typically in a low tax jurisdiction that provides financial and legal advantages
These advantages includes
Greater privacy
Little or no taxation (tax havens)
Easy access to deposit (at least in terms of regulation)
Protection against local, political or financial instability
INVESTMENT BANKING
An investment banking is a specific division of banking related to raising capital for companies, governments and other entities
An investment bank may also assist companies involved in mergers and acquisitions
It is also known as merchant banking
UNIT BANKING
A system of Banking under which services are provided by single banking organisation is called as unit banking
This type of bank has a single office / place of work
It is prevalent in USA
BRANCH BANKING
A system of Banking in which a banking organisation works at more than one place is called as branch banking
GROUP BANKING
Group banking refers to banking services offered by bank designed to be used by groups rather than individuals
This services provides incentive for groups, such as employees of a company
It includes lower interest rates on loans, lower fees and discounts
ISLAMIC BANKING
Islamic banking refers to a banking system that is based on the principles of Islamic (also known as Shariah) and guided by Islamic economics
Collecting interest is not permitted under Islamic law
The Dubai Islamic bank has the distinction of being the world's first fully fledged Islamic Bank, formed in 1975
SHADOW BANKING
A shadow banking system refers to the financial intermediaries involved in facilitating the creation of credit across the global financial system, but whose members are not subject to regulatory oversight
ETHICAL BANKING
Ethical banking is a banking activity concerned with the social and environmental impacts of banks investments and loans
It is also called as social banking are civic banking
VIRTUAL BANKING
A Bank that offer services predominantly or exclusively over the internet is known as virtual banking
It is also known as home banking / electronic banking
PREMIER BANKING
Premier banking refers to an exclusive banking and financial service that is personalised to cattle to the needs of certain clients of the bank like large corporations, business owners and high net worth individuals
PRIVATE BANKING
Private banking is banking investment and other financial services provided by banks to high net worth individuals with high level of income or sizeable assets
PRIVILEGE BANKING
Under privilege banking the customer enjoys exclusive benefits across wide range of products and services by paying some service charge
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